Automotive telematics insurance is a motor insurance cover customized by monitoring real-time driving and underwriting the risk. Telematics insurance comprises a SIM card, motion sensor, GPS system, and a computer module. The telematics insurance device, also called black-box, is fitted in the OBD-II portal of the vehicle. The device captures and transfers real-time data of the vehicle to the insurance company in order to track the vehicle and analyze the accident risks based on route of commute, speed of vehicle, miles driven, and late hour ride.
Demand for low insurance premium among consumers is primarily driving the automotive telematics insurance market. Several consumers who seldom use their vehicles, do not use highways, and drive at safer speeds and have a lower risk of accidents; however, they end up paying the same premium as other customers who are insured with higher accidental risk. Therefore, telematics insurance enables such riders to be charged at lower premiums. Insurance companies can attract low risk drivers and can positively reduce claim expenses by employing telematics. The automotive telematics insurance market is driven by the necessity of insurance companies to underwrite the risk effectively, and to be able to maintain actuarial reserves. Rising trend of vehicle connectivity is driving the automotive telematics insurance market. Mandates on adoption of telematics by governments, such as eCall in Europe, are driving the automotive telematics insurance market.
The global automotive telematics insurance market can be segmented based on technology, insurance type, vehicle, and region. Based on technology, the automotive telematics insurance market can be segregated into mobile application and embedded device. The embedded device segment is expected to lead the global market, as these are used for telematics as well as vehicle connectivity. Embedded devices are being increasingly deployed by automakers as standard fitment for vehicle connectivity and to support the telematics feature.
In terms of insurance type, the global automotive telematics insurance market can be classified into pay-as-you-drive, pay-how-you-drive, and pay-as-you-go. The pay-how-you-drive segment is expected to expand due to its behavior based model that estimates the risk and hence, is highly effective for both the insurance company and the insured. The pay-how-you-drive type of insurance has been widely accepted by fleet owners in North America.
Based on vehicle type, the global automotive telematics insurance market can be bifurcated into passenger vehicle, light commercial vehicle, and heavy commercial vehicle. The commercial vehicle segment is projected to expand as public transport and commercial fleet owners are adopting telematics in order to reduce operational costs.
In terms of region, the global automotive telematics insurance market can be divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Europe leads the global automotive telematics insurance market owing to the high rate of adoption of telematics insurance in the U.K. and Italy. Europe is followed by North America and Asia Pacific, in terms of share of the global market, owing to the high demand of automotive telematics in the U.S., Canada, and Japan.
Key players operating in the global automotive telematics insurance market are Octo Telematics Ltd., TELOGIS, Aplicom, MiX Telematics, Agero Inc., Ctrack Maternaut Limited, Sierra Wireless, AirIQ Inc., and Trimble Inc.
The report offers a comprehensive evaluation of the market. It does so via in-depth qualitative insights, historical data, and verifiable projections about market size. The projections featured in the report have been derived using proven research methodologies and assumptions. By doing so, the research report serves as a repository of analysis and information for every facet of the market, including but not limited to: Regional markets, technology, types, and applications.
The study is a source of reliable data on:
- Market segments and sub-segments
- Market trends and dynamics
- Supply and demand
- Market size
- Current trends/opportunities/challenges
- Competitive landscape
- Technological breakthroughs
- Value chain and stakeholder analysis
The regional analysis covers:
- North America (U.S. and Canada)
- Latin America (Mexico, Brazil, Peru, Chile, and others)
- Western Europe (Germany, U.K., France, Spain, Italy, Nordic countries, Belgium, Netherlands, and Luxembourg)
- Eastern Europe (Poland and Russia)
- Asia Pacific (China, India, Japan, ASEAN, Australia, and New Zealand)
- Middle East and Africa (GCC, Southern Africa, and North Africa)
The report has been compiled through extensive primary research (through interviews, surveys, and observations of seasoned analysts) and secondary research (which entails reputable paid sources, trade journals, and industry body databases). The report also features a complete qualitative and quantitative assessment by analyzing data gathered from industry analysts and market participants across key points in the industry’s value chain.
A separate analysis of prevailing trends in the parent market, macro- and micro-economic indicators, and regulations and mandates is included under the purview of the study. By doing so, the report projects the attractiveness of each major segment over the forecast period.
Highlights of the report:
- A complete backdrop analysis, which includes an assessment of the parent market
- Important changes in market dynamics
- Market segmentation up to the second or third level
- Historical, current, and projected size of the market from the standpoint of both value and volume
- Reporting and evaluation of recent industry developments
- Market shares and strategies of key players
- Emerging niche segments and regional markets
- An objective assessment of the trajectory of the market
- Recommendations to companies for strengthening their foothold in the market
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.